Pattern of governor's budget cuts raises suspicion

Friday

After operating for three weeks without a budget, state government got most of one Thursday, when Gov. Rod Blagojevich filed his anticipated veto of portions of a $59 billion spending plan.

After operating for three weeks without a budget, state government got most of one Thursday, when Gov. Rod Blagojevich filed his anticipated veto of portions of a $59 billion spending plan.

But the pattern of the governor’s funding cuts immediately prompted suspicions that some of them, at least, were driven by politics. One state senator said it looks to him like the governor took care, for instance, to protect projects sponsored by members of a legislative committee that might end up with crucial authority over Blagojevich’s cherished plan to expand state-subsidized health care.

The budget covers the fiscal year that started July 1.

Blagojevich used his veto powers to cut $463 million in spending from the legislation the General Assembly sent him earlier this month. Lawmakers could override some or all of his cuts, but that seems unlikely unless Senate President Emil Jones, D-Chicago, backs off his pledge not to allow an override vote in the Senate.

"It appears there may be political motivations behind these cuts," said Patty Schuh, spokeswoman for Senate Republican Leader Frank Watson of Greenville. "Worthwhile community projects have been cut in what some may consider an ill-conceived plan to curry favor with certain legislators."

No matter what, though, the undisputed portions of the budget now take effect. That means state employees, vendors and others who rely on state payments will receive them.

Comptroller Dan Hynes' office said $500 million in state payments -- including more than $340 million for public school aid and $1.7 million for workers compensation -- would be issued Thursday night.

"We are prioritizing payments to ensure the most critical needs are met first," Hynes said in a news release. "Some of these recipients have been waiting nearly an entire month to receive their checks, funding they depend on for everyday needs. They shouldn't have to wait any longer."

Blagojevich's veto followed through on what he said more than a week ago: that he would slash about $500 million from the budget lawmakers sent him.

In a news release Thursday, the governor touted the budget's "record investment in education," but said it still "leaves a lot of important business unfinished" -- namely, expanding health care financing.

"That's why I'm removing almost $500 million in special pet projects and other spending that we simply can't afford," he said. "And at the same time, we're preparing new rules and administrative changes that will give half a million Illinoisans access to health care."

The $463 million in cuts Blagojevich made Thursday equal what his health care initiatives will cost. He has said, however, that he will find the money to finance his proposals elsewhere in the budget.

The cuts included trimming $15.8 million from constitutional officers' budgets for personnel and other grants and slicing $141.3 million from legislative add-on projects, also known as member initiatives or "pork."

Blagojevich used his line-item veto power, for instance, to erase a provision of the budget that would have set aside a little more than $2.2 million for nurses and other staff to work at an 80-bed addition to the LaSalle Veterans Home.

Rep. Frank Mautino, D-Spring Valley, has been seeking that funding, and he said Thursday he isn't abandoning the effort.

"We'll fix that yet," he said

Blagojevich also trimmed $40 million in Medicaid payments to hospitals and $50 million in Medicaid money for nursing homes.

“He cut $100 million, roughly, from Medicaid funding at the time that he says he wants to expand health care,” Schuh said. “These are the state’s poorest citizens, those on Medicaid.”

The governor also carved $11 million from a $29.3 million appropriation to provide a 2.5 percent cost-of-doing-business increase for community providers for the developmentally disabled, and he eliminated the entire $6.6 million for a 3 percent increase for alcohol and substance abuse treatment providers.

He also vetoed out $3 million that was headed to Peoria, Springfield and other communities with off-track betting parlors. Park districts, cities and museums throughout the state for years have shared that grant money, which is distributed by the Department of Natural Resources.

Blagojevich left intact other budget items, including money for pay raises for lawmakers and other top state officials, including himself.

Blagojevich also left in $4.5 million for Chicago State University to fund the Chicagoland Regional College Program and the university's Public Policy Institute. Jones holds an honorary doctorate from the university and has supported it in past state budgets.

"My understanding is there were only certain members (of the legislature) that had their line items retained in the budget," Rutherford said, noting that he is one of them.

As Blagojevich rewrote the budget, Rutherford said, funds are left untouched for the add-on projects of just six members of the Senate Republican and House Democratic caucuses.

"I'm not so sure that it is coincidental" that those six are also members of the Joint Committee on Administrative Rules, said Rutherford, a member of the panel.

JCAR, a bipartisan panel consisting of 12 lawmakers, deals with the administrative rulemaking process that state agencies use in implementing programs and laws. Depending on exactly how the governor tries to enact his proposal to expand health care, JCAR could wind up playing a key role in whether his plan becomes reality.

Blagojevich spokeswoman Rebecca Rausch denied that political motives were behind the budget cuts.

"Some of the projects lawmakers included in the budget had little, if anything, to do with the mission of state government," she said in an e-mailed statement. "Others may serve a purpose for a particular community or organization, but we can't afford to spend taxpayer dollars on them right now. We ended up with a budget we can better afford and that meets the most important needs like health care facing the people of our state."

Adriana Colindres can be reached at (217) 782-6292 or adriana.colindres@sj-r.com. Dana Heupel can be reached at (217) 788-1518 or dana.heupel@sj-r.com.

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